This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Line 1a—Organization's Name.
Enter the organization's name as it appears in its organizing documents, including amendments. If the organization
will be operated under another
name, show that name in parentheses.
Line 1b—Employer Identification Number (EIN).
Enter the organization's EIN. If the organization does not have an EIN, it must apply for one. An EIN can be applied
for:
-
Online—Click on the EIN link at
www.irs.gov/businesses/small. The EIN is issued immediately once
the application information is validated.
-
By telephone at 1-800-829-4933 from 8:00 a.m. to 8:00 p.m. in the local time zone.
-
By mailing or faxing Form SS-4, Application for Employer Identification Number.
If the organization has not received its EIN by the time the return is due, enter “
Applied for” in the space for the EIN. For more details,
see Pub. 583.
Part II—Type of Entity and Organizational Documents
One of the basic requirements for exemption is that the organization be “organized” for one or more exempt purposes. If the organization does
not have an organizing instrument, it will not qualify for exempt status.
None of the documents submitted in support of this application, including organizational documents, will be returned.
Instead of the originals, submit “conformed” copies of these documents. A “conformed” copy is one that agrees with the original document
and all of its amendments. If the copies are not signed, they must be accompanied by a declaration signed by an officer authorized
to sign for the
organization, certifying that they are complete and accurate copies of the original documents.
Chemically or photographically reproduced copies of articles of incorporation showing the certification of an appropriate
government official need
not be accompanied by a declaration.
Part III—Activities and Operational Information
Lines 17 through 19.
The information requested on lines 17 through 19 must be completed for the current year and each of the 3 immediately
preceding years (or for the
time the organization has existed if less than 4 years). The requested information for the current year must cover the period
beginning on the first
day of your organization's established annual accounting period and ending on any day which is within 60 days of the date
of the application. If the
date of the application is less than 60 days after the first day of the current accounting period, no information is required
for the current year.
Requested information is required for the 3 preceding years regardless of the current year requirement. Please note that if
no information is required
for the current year, the preceding year's information period can end on any day which is within 60 days of the date of the
application.
Definitions.
The term “
producer” means an individual or corporation engaged in farming as a business receiving income based on farm production rather than
fixed compensation. For example, a corporation leases its land to a tenant farmer who agrees to pay a rental fee based on
a percentage of the farm
crops produced. Both the landowner and the tenant farmer qualify as producers.
“
Current and active” producers are patrons of a cooperative who market more than 50% of their products or purchase more than 50% of their
supplies and equipment through the cooperative during the cooperative's tax year.
The statement of receipts and expenditures and the balance sheets must be completed for the current year and each of the 3
immediately preceding
years (or for the time the organization has existed if less than 4 years). We may request financial data for more than 4 years
if circumstances
warrant. All financial information for the current year must cover the period beginning on the first day of your organization's
established annual
accounting period and ending on any day which is within 60 days of the date of the application. If the date of the application
is less than 60 days
after the first day of the current accounting period, no financial information is required for the current year. Financial
information is required for
the 3 preceding years regardless of the current year requirements. Please note that if no financial information is required
for the current year, the
preceding year's financial information can end on any day which is within 60 days of the date of the application.
You may reproduce page 4 of the form and complete the financial data for each required year. Attach the financial data for
all required years to
the application.
The statements should be consistent with the method of accounting the organization uses in maintaining its books and records.
Line 3b—Cost of Goods Sold.
Include per-unit retain allocations paid to patrons in money, qualified written notices of allocation, or other property
(except nonqualified
per-unit retain certificates) and the amount paid to patrons in money or other property (except per-unit retain certificates)
to redeem nonqualified
per-unit retain certificates. (See sections 1382 and 1388.)
Line 15—Other Expenditures.
In the attached schedule for other expenditures, include a breakdown for nonpatronage distributions paid as dividends
on capital stock and
nonpatronage distributions made on a patronage basis. This breakdown should include only distributions of earnings derived
from business done for the
United States Government or any of its agencies or income from sources other than patronage, but only to the extent such amounts
are paid in the same
manner provided for patronage dividends below. The term “
income from sources other than patronage” means incidental income derived from sources
not directly related to the marketing, purchasing, or service activities of the cooperative association. For example, income
derived from the lease of
premises, from investment in securities, or from the sale or exchange of capital assets constitutes income from sources other
than patronage.
Also include in the schedule the total amount of per-unit retain allocations other than those reflected in cost of
sales on line 3b and the total
amount of written notices of allocation other than those reflected on line 16. (See sections 1382 and 1388.)
Line 16—Patronage Dividends.
In the attached schedule, show the amount of patronage dividends paid to patrons in money, qualified written notices
of allocation, or other
property (except non-qualified written notices of allocation) and the amount paid to patrons in money or other property (except
written notices of
allocation) to redeem nonqualified written notices of allocation. (See sections 1382 and 1388 and the related regulations.)
